If Price and Demand Are Related by the Function V

question 2

Short Answer

If price and demand are related by the function v = 15 + 15p and the fixed cost is $150 while the variable cost is $5, then the profit at a price of 20 Rupees is ________.

---

Definitions:

Marginal Cost Curve

A visual chart that illustrates the change in the expense associated with producing an extra unit of a product as the total output grows.

Average Variable Cost

The total variable costs divided by the quantity of output produced, reflecting the average cost of producing each unit excluding fixed costs.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the surplus gained from an activity beyond the next best alternative.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.